Detective Leading Senior Constable Neal Thompson and Senior Constable Vadim de Waart-Hottart died while serving a warrant to Dezi Freeman at Porepunkah, about 300km northeast of Melbourne, on August 26.
Freeman was last seen fleeing into bushland and hundreds of police have been scouring the area to find him.
The Alpine area would usually be preparing for an influx of visitors over the upcoming school holidays, but visitors had stayed away during the search, Bright and District Chamber of Commerce president Marcus Warner said.
"The community is starting to now get a little bit fractured in some of their opinions and their views," Mr Warner told AAP.
"(Wondering) should we now try to get on with life and ignore the police advice?
"Others are saying no, we need to follow the police advice as there's still a gunman on the loose."
Official advice states that travel in Porepunkah should be restricted to essential movements and a VicEmergency alert warns people to be vigilant across the wider northeast area and detour the search zone.
Mr Warner believes the advice has deterred visitors, with his business Pepo Farms forced to close early two weekends in a row.
"The situation for businesses and community members in the Bright and Porepunkah area have significantly worsened emotionally, psychologically and definitely financially," he said.
The chamber appealed to the state government for emergency funding to cover unexpected financial losses but said it was yet to receive a response.
Porepunkah locals have said there's a growing sense of fear and anger in the area, with many residents locking their cars and homes for the first time.
Freeman, 56, is linked to the so-called "sovereign citizen" movement, which Prime Minister Anthony Albanese described as a "threat" to the nation, along with the actions of far-right agitators.
"The social cohesion issue is something that causes me a great deal of distress," he said on Tuesday.
"The fact that some people think that the government isn't legitimate, the so-called sovereign citizens engage, therefore, in lawlessness because they don't accept the law."
The prime minister was among thousands of mourners who paid tribute to the officers at their funerals.
Det Sen Const Thompson was weeks from retiring and his partner Lisa Thompson told his funeral on Monday how he taught her to love without fear and be brave when scared.
"Honey, I'm so grateful you did, because I am scared," the Benalla-based sergeant said.
"I don't want to live my life without you and I don't want to finish our dreams on my own. But I will, I promise."
Tuesday marks two weeks since the fatal confrontation which also wounded a third officer.
Police believe Freeman might be receiving help from people within his network, offering a $1 million reward for information leading to his arrest.
